Turkish President Recep Tayyip Erdogan has acknowledged the progress made in controlling inflation rates in Turkey, yet he emphasizes that more work is needed to achieve satisfactory levels. Speaking at the 51st General Assembly of the Metallurgical Industries Employers' Union in Istanbul, Erdogan stated, "We have made great progress in combating rising inflation," but noted that the decline is slow and requires patience for better results.
As per recent statistics, Turkey's annual inflation rate decreased to 49.4% in September 2024, marking the first time since 2021 that it fell below the central bank's base interest rate, currently set at 50%. This follows a peak inflation rate of 75% recorded in May. The Turkish central bank has responded by significantly increasing its key interest rate from 8.5% to 50% since June 2023, as part of a strategy to adopt more conventional monetary policies.
Erdogan highlighted the resilience of Turkey's economic infrastructure, despite the challenges posed by a "ring of fire" surrounding the nation. He mentioned that the devastating earthquakes last year inflicted an estimated $104 billion in economic damage, but the government's economic policies have helped to mitigate the impact.
In terms of current economic figures, Erdogan revealed that the monthly current account deficit for August reached $4.3 billion, the highest in five years. However, the Turkish Central Bank's reserves hit a record high of $156 billion last month, and annual exports surpassed $260 billion.
The President also stressed the importance of promoting saving awareness while maintaining expenditures related to earthquake recovery efforts. He noted a rise in employment, with 654,000 new workers added in the first eight months of this year, bringing the unemployment rate down to 8.5%. Erdogan reaffirmed Turkey's commitment to policies aimed at reducing unemployment and combating the informal economy, while calling for accelerated structural reforms to ensure sustainable economic growth.
